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Ratio trend matrix
  • : December 4, 2019
  • : Prashant Shah
  • : Definedge Solutions
Ratio trend matrix

1) Go to Matrix -> Ratio Trend Matrix

Ratio trend

2) Select Group name, denominator scrip name and number of bars. 

Ratio trend

You will get to see RS ratio pattern of the stock for each day over a period you have selected, and score of the scrip based on that.  

Ratio trend

Definedge Method of scoring:
Bullish continuation: Price has gone up with denominator (+2)
Bullish RS divergence: Denominator is weak but price has shown the strength (+2)
Sign of Strength: Price has fallen along with denominator but outperformed (+1)
Bearish continuation:Price has gone down with denominator (-2)
Bearish RS divergence: Denominator is strong but price has shown the weakness (-2)
Sign of Weakness: Price has fallen along with denominator but underperformed (+1)

Each day is scored based on abvoe calculation and total score is shown in the table, you can sort the score column to filter the stocks. This is a very interesting way of picking the stocks which are showing relative strength or weakness over last several bars.